Treasury Bill Ladder Calculator
A Treasury Bill ladder staggers T-bill purchases (4, 8, 13, 17, 26, or 52 weeks) so a portion matures every 4 weeks. Provides steady cash flow with the safety of US Treasury backing and zero state income tax. Best for emergency funds, short-term savings, and cash equivalent allocations.
Why T-Bill Ladders Beat Single Bonds
Single bond maturity means cash all comes back at once — reinvestment risk if rates fell. Ladder spreads maturities so a portion always recycles at current rates. Smooths interest income. Reduces interest rate risk. Provides liquidity (something maturing every 4 weeks in a 13-rung ladder).
State Tax Advantage
Treasury interest is federally taxable but exempt from state and local income tax. Worth significantly in high-tax states. Example: 4.85% T-bill yield in California with 13.3% state rate = equivalent to 5.6% taxable CD yield. Switching $100K from CDs to T-bills in California saves $645/yr in state tax.
Building the Ladder
Start by buying 4-week, 8-week, 13-week, 17-week, 26-week, and 52-week T-bills simultaneously. As each matures, roll into a new 52-week. After 52 weeks, all rungs are 52-week bills with monthly maturities. TreasuryDirect.gov (direct) or brokerage (slightly easier with auto-roll). $100 minimum on TreasuryDirect.
Source: TreasuryDirect.gov T-Bill auction calendar 2026, Federal Reserve H.15 daily yields. Last updated: May 2026.